17 May 2012 07:00
17 May 2012
Bellzone Mining plc
("Bellzone" or "the Company")
Results for the year ended 31 December 2011
Bellzone Mining plc (AIM:BZM), today announces its full year results for the year ended 31 December 2011.
Key points
·; Secured US$236m through a placement of 181 million ordinary shares
·; Forécariah JV construction and production stockpiling delivered on time and budget
·; Kalia Oxide and supergene resource of 286mt for 104.5mt of recoverable product
·; 6.16 billion tonne magnetite JORC resource that is open at depth for Kalia released in Q3 2011
·; Kalia now has 1.46 billion tonnes of contained iron JORC resources
·; Kalia socio-economic impact assessment and environmental impact assessment studies completed and approved
·; Kalia DFS substantially completed and will be presented to the board for final approval and publication in Q2 2012
·; Completed $1.1 million airborne geophysical survey for nickel / copper exploration at Sadeka
·; Lost time injury frequency rate maintained at zero
·; Cash on hand of $120m as at 16 May 2012 with Forécariah fully financed to production
The current status of the Forécariah JV project warrants a specific mention and the following points are provided:
·; Issue of Mining Permit by Government of Guinea pending - Commission for Department of Mines and Geology approval obtained - awaiting signature by Council of Ministers and Minister of Mines and Geology
·; The project is operational ready from the mine to the Panamax
·; Forécariah JV project has been delivered on time and budget
·; Approximately 30,000t of run of mine material is stockpiled
·; The barges, tugs and storage Panamax have been delivered to Guinea and are ready to start the trans-shipping operations.
·; Discussions are ongoing with potential off takers are in progress
·; Wide space drilling through the Yomboyeli West and Layah targets has been completed
·; Infill programme is in progress to support a JORC resource development
·; An internal resource update will be issued in Q3, 2012
Nik Zuks, Chief Executive Officer of Bellzone, commented: "The successes of the past year have not been without its challenges. 2011 was a very busy year for Bellzone at Kalia, Sadeka and with CIF on the Forécariah JV. The effort at Forécariah has been truly remarkable and clearly demonstrates our execution capability where the project was taken from greenfield to export readiness within 15 months."
"The work continues at Kalia and we look forward to making announcements relating to progress on the economic studies and resource development in the next few months. Our focus and effort at this time is on working with the Government of Guinea to ensure that we can start loading iron ore from Forécariah onto an export vessel as soon as possible. We are ready to commence pit to port operations within hours of receiving the permit. We have received no notification of any outstanding issues with the application for the Forécariah permit and although the processing of the permit has taken longer than anticipated we are confident that it will be issued to allow project objectives to be met."
Enquiries:
Bellzone Mining plc
Terry Larkan/Graham Fyfe +61 (0) 8 9420 8900
Canaccord Genuity Limited
Nominated Adviser and Joint Broker to Bellzone +44 (0)20 7523 8000
Andrew Chubb/Tarica Mpinga
Renaissance Capital Limited
Joint Broker to Bellzone +44 (0)20 7367 7777
Rob Edwards
Tavistock (UK)
Jos Simson/Mike Bartlett/Paul Youens +44 (0)20 7920 3150 / +44 (0)7899 870 450
PPR (Australia)
David Ikin
+61 (0) 8 9388 0944 / +61 (0) 408 438 772
About Bellzone Mining Plc
Bellzone Mining plc is an exploration and resource development company with iron ore and nickel / copper permits in the Republic of Guinea, West Africa.
Kalia Mine
The Company's flagship project, the Kalia Mine Project, is planned to commence production in 2014 and be producing iron ore and iron ore concentrate at a rate of 50 million tonnes per annum in 2018. The Kalia Mine Project has a 6.16 billion tonnes magnetite JORC resource and an oxide JORC resource of 193 million tonnes. A Supergene banded iron formation ("BIF") JORC resource of 92.5 million tonnes at 36.5% Fe has been delineated and shows the potential to upgrade to produce 37 million tonnes of 63% Fe material. The oxide and Supergene BIF resources have been established from just 10.5% of the 55km2 of the mapped surface oxides on the Kalia permit. Drilling results and internal estimates indicate that the Kalia Mine Project has the potential to host more than 10 billion tonnes of magnetite and 2 billion tonnes of oxide.
CIF - Project, Financing & Infrastructure Partner
Bellzone has a definitive agreement ("Agreement") with China International Fund Limited ("CIF"). The Agreement gives CIF right of first refusal to purchase the Kalia Mine Project's production at market rates and CIF commits to providing Bellzone with commercially related funding for the development of the Kalia Mine Project.
The Agreement contains CIF's commitment to fund and build commercially operated rail and port infrastructure that will enable Bellzone to export production from the Kalia Mine Project. The infrastructure is being developed by Kalia Horizon Minerals Pte Limited, an entity that is 90% owned by CIF with Bellzone having a 10% carried interest. The Agreement provides for Bellzone to be the lowest cost user with permanent priority access.
Forécariah JV
Bellzone and CIF have a producing joint venture in the Forécariah region on iron permits that lie between 30 and 80 kilometres from the Guinea coast. Production started in Q1 2012, based on an internal resource estimate of 146 million tonnes of oxide, with an initial production rate of 3-4 mtpa. The Forécariah permits are held in a CIF subsidiary Guinea Development Corporation ("GDC") and will be transferred to the JV operations company Forécariah Guinea Mining SA as per the terms of the definitive and JV shareholder agreements.
Other activities
Bellzone has completed a mapping and surface sampling programme identifying highly prospective targets at its Sadeka Nickel/Copper Project. The VTEM aerial survey has been completed and highly prospective targets have been identified and will form the basis of the 2012 drilling programme due to commence in December 2011.
Chairman's Statement
Our Company has been extremely busy this past year continuing the good work that started before listing in April 2010. The secondary fundraising, significant progress on the ambitious Forécariah project and the continued development at the flagship Kalia Mine Project demonstrate the capacity of the management team.
In the 2010 Annual Report we set out our areas of focus. These were to continue to add value to the Company by:
·; Completing the Kalia Mine studies, including the social economic impact assessment ("SEIA"), environmental impact assessment ("EIA") and definitive feasibility study ("DFS"). The SEIA and EIA studies were completed and approved by the Government during the year. The DFS was substantially completed by the Bellzone Project Team and appointed consultants at the end of Q4 2011 and will be before the board for final approval and publication in Q2 2012
·; Completing the maiden JORC for the oxide resource at Kalia. This was completed and augmented during the year to provide the Company with a resource of 286mt for 104.5mt of recoverable product at 58% Fe
·; Commencing negotiations with CIF for the Kalia Mine financing, commercial off take agreements and the transport agreement. The process for these negotiations commenced during Q4 2011 and the actual discussions are dependent on the completion of CIF's feasibility studies for the rail and port, likely to commence in Q3 2012
·; Completing the Kalia magnetite metallurgical bulk sample. Completed and results announced
·; Ongoing resource development at Kalia with planned JORC upgrades. The maiden resource was increased during the year and the magnetite resource was increased to 6.16 billion tonnes
·; Developing the Forécariah JV project. The project advanced to the stage of stockpiling production in Q1 2012 and with the issue of the outstanding permit in May 2012, the loading of the first vessel is expected to commence immediately on obtaining the permit
·; Assessing the potential of the Sadeka Nickel / Copper targets. The Company invested $1.1 million on an airborne geophysical survey to ensure assessment of any blind targets and subsequent drill target optimisation using the best data available for nickel / copper exploration
·; Completing our due diligence of iron ore targets in Mali. After an initial gravity survey and drilling, the Company decided not to proceed with the project
The most significant corporate event addressed the important aspect of funding for the ongoing development of Kalia and the accelerated development of the Forécariah Joint Venture.
The funding was secured both through a strategic placement with China Sonangol International (S) PTE, a subsidiary of our strategic partner, China International Fund Limited and an institutional equity placing. CIF subscribed for 79 million ordinary shares for proceeds of $103 million while the institutional placing of 102 million ordinary shares provided $133 million for a total capital raising of $236 million. These funds will be utilised in the delivery of our focus areas as outlined above.
The instability in the financial markets has not impacted the activities of our Company and Bellzone remains committed to the projects on the strong belief that the outlook is a strong market for iron ore miners.
2012 will see the Company focus on several key areas for Bellzone's success:
·; Ensuring that the Forécariah JV moves into operations efficiently with a focus on cost management and economic returns to the shareholders
·; Securing finance and infrastructure solutions for Kalia
·; Developing all aspects of the Kalia resource
·; Commencing works to implement the Kalia project plan, including the rail and port
The Board of Directors saw a change with the resignation of our non-executive Director Mr Simon Farrell. The Nomination Committee is currently going through the appropriate process of reviewing skills and candidates for a suitable replacement to further strengthen the Board.
The staff with the leadership of our experienced management team will continue to deliver the outcomes required to reduce the project risk, increase our resources and develop the opportunities that will add value to the Company and our shareholders.
Michael Farrow
Chairman
Operational and Financial Overview
Kalia Resource definition
·; Since commencement of work at Kalia, Bellzone has drilled a total of 127,397 metres (54,359 metres in 2011) over 1,203 drill holes (716 in 2011) and sent 34,747 samples for analysis (13,880 in 2011)
·; The magnetite JORC is measured along 7 kilometres of the 29 kilometre 100% Bellzone owned Kalia strike and stands at 6.16 billion tonne ("bt") and the resource remains open at depth
·; Oxide JORC resource stands at 193mt for 70.15mt of recoverable oxide product grading at 58% iron
·; Supergene JORC resource currently stands at 93mt for 34.5mt of recoverable product grading at +58% iron
·; Next JORC update Q2 2012
Kalia Mine development
·; Mining Convention for the Kalia Mine approved and signed on 28 July 2010
·; Mining Convention passed into Guinea law through Presidential Decree signed on 31 August 2010
·; SEIA and EIA studies for the Kalia Mine completed
·; Highly regarded project team in place
Infrastructure development
·; Kalia Horizons Minerals Pte Ltd ("KHM") incorporated for the development of the infrastructure required for the Kalia Mine
·; US$40 million deposited into KHM by CIF on 14 June 2010 to fund feasibility studies
·; Kalia Logistics SA ("KLS"), 100% owned Guinea subsidiary of KHM established
·; Bellzone signed an Infrastructure Accord (the "Accord") with the Republic of Guinea, announced 17 June 2010 that provides Bellzone with exclusive access to an infrastructure corridor with rights to conduct technical and economic feasibility studies for the rail and port infrastructure
·; Infrastructure Accord passed into Guinea law through Presidential Decree signed on 31 August 2010
·; SEIA and EIA on the infrastructure development completed and ready for submission to Government
·; Engineering and feasibility studies for the rail and port are expected to be published Q3 2012
Forécariah
·; Joint Venture formed to exploit CIF permits situated between 40 and 80kms from a suitable port site
·; Multiple iron ore targets with oxide at surface and magnetite resources
·; The Yomboyeli prospect has been a focus of oxide development work and the Moussaya prospect the focus of magnetite evaluation drilling
·; Internal resource estimate is 158 million tonnes of oxide with an internal resource update due in Q3 2012
·; Accelerated development achieved stockpile production with the initial objective of ramping up to a production rate of 3‐4 mtpa
·; All associated infrastructure completed to export readiness in Q1 2012Phase II and III ramp up expected to reach 10 mtpa
Sadeka Nickel/Copper Project
·; Completed a $1.1million VTEM helicopter survey covering 1,370km2
·; New diamond rig and support vehicles have been deployed for targeted drilling with initial results expected in H2 2012.
Corporate and Finance
·; Raised $236m in March 2011
·; Cash balance at year end $153.1m
·; Resignation of Non-Executive Director Simon Farrell
Consolidated Statement of Financial Position
at 31 December 2011
2011 | 2010 | ||||
Notes | $'000 | $'000 | |||
ASSETS | |||||
Non‑current assets | |||||
Property, plant and equipment | 2 | 5,429 | 2,275 | ||
Mineral properties in the exploration and evaluation phase | 9,277 | 9,277 | |||
Investment accounted for using the equity method | 3 | 65,571 | - | ||
Total non‑current assets | 80,277 | 11,552 | |||
Current assets | |||||
Cash and cash equivalents | 153,146 | 39,107 | |||
Trade and other receivables | 2,542 | 835 | |||
Inventories | 123 | 62 | |||
Total current assets | 155,811 | 40,004 | |||
Total assets | 236,088 | 51,556 | |||
EQUITY | |||||
Stated Capital | 4 | 326,662 | 99,674 | ||
Reserves | 1,101 | 1,065 | |||
Retained losses | (95,793) | (50,286) | |||
Total equity | 231,970 | 50,453 | |||
LIABILITIES | |||||
Current liabilities | |||||
Trade and other payables | 3,773 | 901 | |||
Provisions | 345 | 202 | |||
Total current liabilities | 4,118 | 1,103 | |||
Total liabilities | 4,118 | 1,103 | |||
Total equity and liabilities | 236,088 | 51,556 |
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2011
Notes | 2011 $'000 | 2010 $'000 | ||
Continuing Operations: | ||||
Employee benefits expense | (9,498) | (9,182) | ||
Depreciation and amortisation expense | 2 | (1,463) | (2,885) | |
Administration expenses | (3,071) | (2,012) | ||
Consulting expenses | (2,997) | (2,075) | ||
Exploration expenses | (23,027) | (7,341) | ||
Legal expenses | (492) | (353) | ||
Occupancy expenses | (992) | (744) | ||
Travel and accommodation expenses | (2,205) | (1,843) | ||
Loss on sale of property, plant and equipment | (25) | - | ||
Results from operating activities | (43,770) | (26,435) | ||
Finance income | 1,183 | 2,383 | ||
Finance costs | (137) | (39) | ||
Share of net loss of investment accounted for using the equity method |
3 | (3,667) | - | |
Loss before income tax | (46,391) | (24,091) | ||
Income tax expense | (173) | (20) | ||
Loss from continuing operations for the year | (46,564) | (24,111) | ||
Other comprehensive (loss)/income for the year, net of tax: | ||||
Exchange differences on translation of foreign operations | (283) | 273 | ||
Share of other comprehensive loss of investment accounted for using the equity method | - | - | ||
Total comprehensive loss for the year | (46,847) | (23,838) | ||
Total comprehensive loss for the year is attributable to members of the parent entity | (46,847) | (23,838) | ||
Cents | Cents | |||
Loss per share attributable to the ordinary equity holders of the parent entity: | ||||
Basic and diluted loss per share | (6.923) | (4.806) |
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
Consolidated Statement of Changes in Equity
for the year ended 31 December 2011
Notes | Stated capital | Reserves | Retained losses | Totalequity | ||||
$'000 | $'000 | $'000 | $'000 | |||||
Attributable to equity holders of the Company | ||||||||
Balance at 1 January 2010 | 49,897 | (3,166) | (26,175) | 20,556 | ||||
Loss for the year | - | - | (24,111) | (24,111) | ||||
Other comprehensive income | - | 273 | - | 273 | ||||
Total comprehensive loss for the year | - | 273 | (24,111) | (23,838) | ||||
Contributions of equity, net of transaction costs | 49,777 | - | - | 49,777 | ||||
Share-based payment transactions | - | 3,958 | - | 3,958 | ||||
Balance at 31 December 2010 | 99,674 | 1,065 | (50,286) |
| 50,453 |
Balance at 1 January 2011 | 99,674 | 1,065 | (50,286) | 50,453 | ||||
Loss for the year | - | - | (46,564) | (46,564) | ||||
Other comprehensive income | - | (283) | - | (283) | ||||
Total comprehensive loss for the year | - | (283) | (46,564) | (46,847) | ||||
Contributions of equity, net of transaction costs | 4 | 226,988 | - | - | 226,988 | |||
Treasury shares | - | (154) | - | (154) | ||||
Share-based payment transactions, net | - | 473 | 1,057 | 1,530 | ||||
Balance at 31 December 2011 | 326,662 | 1,101 | (95,793) | 231,970 |
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Consolidated Cash Flow Statement
for the year ended 31 December 2011
2011 | 2010 | |||
Notes | $'000 | $'000 | ||
Net cash outflow from operating activities | 5 | (39,534) | (17,494) | |
Cash flows from investing activities | ||||
Payments for property, plant and equipment | (4,642) | (930) | ||
Payments for working capital loan to supplier | (1,095) | - | ||
Investment in jointly controlled entity | 3 | (20) | - | |
Loan to jointly controlled entity | 3 | (69,218) | - | |
Net cash outflow from investing activities | (74,975) | (930) | ||
Cash flows from financing activities | ||||
Proceeds from issues of shares and other equity securities | 4 | 237,408 | 51,286 | |
Payments for share issue costs | 4 | (8,890) | (5,515) | |
Net cash inflow from financing activities | 228,518 | 45,771 | ||
Net increase in cash and cash equivalents | 114,009 | 27,347 | ||
Cash and cash equivalents at the beginning of the financial year | 39,107 | 12,982 | ||
Exchange differences | 30 | (1,222) | ||
Cash and cash equivalents at end of year | 153,146 | 39,107 |
The above consolidated cash flow statement should be read in conjunction with the accompanying notes.
1. Corporate |
Corporate information Bellzone Mining plc, is a public company incorporated and registered in Jersey. Its ordinary shares are traded on the Alternative Investment Market ("AIM"). The financial information presented in this preliminary announcement was authorised for issue by the Board of Directors of Bellzone Mining Plc on 16 May 2012. The audited financial statements will be released on the Company's website www.bellzone.com.au in due course. The audit report on the full financial statements has yet to be signed.
Basis of preparation The financial information presented in this preliminary announcement has been prepared on the same basis as set out in the audited consolidated financial statements for the year ended 31 December 2010. The financial information presented in this preliminary announcement has been prepared on a historical cost basis. The financial information is presented in US dollars, which is the parent company's functional and the Group's presentation currency. All values are rounded to the nearest thousand (US$000) except when otherwise indicated.
Statement of compliance The financial information has been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and Companies (Jersey) Law 1991. |
Going concernThe results for the year reflect the current nature of the Group's activities being mineral exploration and project development. The current nature of the Group's activities does not provide the Group with production or trading revenue. The Group has met its working capital requirements by raising the required capital through the placing of shares with investors raising a total of $345.6 million since incorporation.The group carries cash and cash equivalents of $153.1m and as at 31 December 2011, its current assets exceed its current liabilities by $151.7m. The funds currently available will meet planned activities for the forthcoming twelve months. Accelerated development works or the exploitation of unforseen opportunities will not be funded from existing funds. The Director's believe that the Group will continue as a going concern and base this view on the factors set out below. ·; The pace of the development of the projects is subject to a number of variables largely within the control of the Group. ·; The project development programs and budgets are reviewed on an annual basis and approved by the Board. The Board in approving the budget takes into account the: ·; working capital available for the next twelve months ·; work required to continue to meet commitments and advance the project to the production phase; and ·; maintenance of a sufficient buffer of working capital required for the foreseeable future. ·; The Board monitors expenditure against budgets on a monthly basis and adjusts the program as required. ·; The Company has the proven ability to raise funds in the capital markets, although none are needed to fund the Company's planned activities for a period of at least 12 months. ·; The availability of funding for the Kalia Mine through the 2010 Definitive Agreement between the Company and China International Fund Limited. The Directors believe that the Group has adequate resources to continue for the foreseeable future and has the ability to source funding to continue with the planned exploration and project development as well as any expansion of the scope or acceleration of activity, thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
2. Property, plant and equipment | ||||||
Consolidated | Freehold buildings $'000 | Plant and equipment $'000 | Furniture, fittings and equipment $'000 | Motor vehicles $'000 | Work in progress$'000 | Total $'000 |
At 31 December 2011 | ||||||
Opening net book value - January 2011 | 167 | 968 | 262 | 612 | 266 | 2,275 |
Additions | 423 | 514 | 504 | 782 | 2,419 | 4,642 |
Disposals | - | - | (12) | (13) | - | (25) |
Depreciation charges | (96) | (913) | (216) | (238) | - | (1,463) |
Transfers between categories | (21) | 19 | 2 | - | - | - |
Closing net book value - December 2011 | 473 | 588 | 540 | 1,143 | 2,685 | 5,429 |
Cost | 753 | 8,937 | 1,061 | 1,784 | 2,685 | 15,220 |
Accumulated depreciation | (280) | (8,349) | (521) | (641) | - | (9,791) |
Net book value | 473 | 588 | 540 | 1,143 | 2,685 | 5,429 |
At 31 December 2010 | ||||||
Opening net book value - January 2010 | 209 | 3,409 | 304 | 343 | - | 4,265 |
Additions | 29 | 80 | 125 | 430 | 266 | 930 |
Disposals | (2) | (18) | (28) | - | - | (48) |
Depreciation charges | (69) | (2,503) | (152) | (161) | - | (2,885) |
Exchange differences (net) | - | - | 13 | - | - | 13 |
Closing net book value - December 2010 | 167 | 968 | 262 | 612 | 266 | 2,275 |
Cost | 354 | 8,401 | 575 | 1,059 | 266 | 10,655 |
Accumulated depreciation | (187) | (7,433) | (313) | (447) | - | (8,380) |
Net book value | 167 | 968 | 262 | 612 | 266 | 2,275 |
3. Investment accounted for using the equity method
2011 | 2010 | ||||||
$'000 | $'000 | ||||||
Investment in Forécariah Holdings Pte Ltd ("FHPL") | 20 | - | |||||
Share of net loss of investment accounted for using the equity method | (3,667) | - | |||||
Long term receivable from FHPL | 69,218 | - | |||||
65,571 | - | ||||||
The group acquired a 50% interest in Forécariah Holdings Pte Ltd ("FHPL"), a jointly controlled entity involved in the development of an iron ore mine in Forécariah, Guinea West Africa. The interest in FHPL is accounted for using the equity method. The long term receivable relates to expenditure incurred on behalf of, assets acquired for and cash advanced to Forécariah Holdings Pte Ltd in respect of the Joint Venture. The loan will be interest bearing at market rates of interest (subject to finalisation of the Shareholder Loan Agreements) and is expected to be recovered over 2 - 7 years. The period for recovering the loan is dependent on the funds that FHPL allocates to investment for the expansion of production facilities and new processing plants to maximise the return to shareholders.Information relating to the joint venture partnership is set out below: | |||||||
2011 | 2010 |
| |||||
$'000 | $'000 |
| |||||
| |||||||
Share of partnership's assets and liabilities |
| ||||||
Current assets | 511 | - |
| ||||
Non-current assets | 56,168 | - |
| ||||
Total assets | 56,679 | - |
| ||||
| |||||||
| |||||||
Current liabilities | 14,259 | - |
| ||||
Non-current liabilities | 46,071 | - |
| ||||
Total liabilities | 60,330 | - |
| ||||
| |||||||
Net assets | (3,651) | - |
| ||||
| |||||||
Share of partnership's revenue, expenses and results |
| ||||||
Revenues | - | - |
| ||||
Expenses | (3,667) | - |
| ||||
Profit/(loss) before income tax | (3,667) | - |
| ||||
| |||||||
| ||||||||||
4. Stated Capital |
| |||||||||
31 December 2011 | 31 December 2010 |
| ||||||||
Shares | $'000 | Shares | $'000 |
| ||||||
a. Stated Capital | ||||||||||
Ordinary shares of no par value | 721,324,485 | 344,906 | 537,124,485 | 107,498 |
| |||||
Share issue costs | (18,244) | (7,824) |
| |||||||
326,662 | 99,674 | |||||||||
| ||||||||||
b. Movements in ordinary shares | ||||||||||||||||||||||||||||||||||||
Date | Details | Number of shares | $'000 |
| ||||||||||||||||||||||||||||||||
1 January 2011 | Opening balance | 537,124,485 | 107,498 |
| ||||||||||||||||||||||||||||||||
8 March 2011 | Exercise of warrants at 35 pence | 3,200,000 | 1,811 |
| ||||||||||||||||||||||||||||||||
14 March 2011 | Shares issued to CIF at 80 pence per share | 79,000,000 | 103,000 |
| ||||||||||||||||||||||||||||||||
24 March 2011 | Institutional Placing at 80 pence share | 102,000,000 | 132,597 |
| ||||||||||||||||||||||||||||||||
31 December 2011 | Closing balance | 721,324,485 | 344,906 |
| ||||||||||||||||||||||||||||||||
Ordinary shares have no par value, carry one vote per share and carry the right to dividends. All shares have been fully paid. c. Reconciliation of net cash inflow from financing activities
| ||||||||||||||||||||||||||||||||||||
| ||||
| ||||
5. Reconciliation of loss after income tax to net cash inflow from operating activities |
| |||
2011 | 2010 | |||
$'000 | $'000 | |||
Loss for the year before tax | (46,391) | (24,111) | ||
Share-based payment | - | 2,901 | ||
Depreciation and amortisation expense | 1,463 | 2,885 | ||
Income tax paid | - | 20 | ||
Unrealised foreign exchange gain | (314) | 1,462 | ||
Loss on disposal of assets | 25 | 48 | ||
Share of net loss of joint venture entity | 3,667 | - | ||
Change in operating assets and liabilities | 2,016 | (699) | ||
Increase in trade and other receivables | (766) | (439) | ||
Increase in inventories | (61) | (35) | ||
Decrease in other operating assets | - | 940 | ||
Increase/(decrease) in trade and other payables | 2,700 | (1,275) | ||
Increase in provisions | 143 | 110 | ||
Net cash outflow from operating activities | (39,534) | (17,494) | ||
6. Subsequent events
There are no events subsequent to the year-end that require disclosure.